U.S. patent number 7,827,101 [Application Number 10/340,570] was granted by the patent office on 2010-11-02 for payment system clearing for transactions.
This patent grant is currently assigned to First Data Corporation, The Western Union Company. Invention is credited to John Joseph Mascavage, III.
United States Patent |
7,827,101 |
Mascavage, III |
November 2, 2010 |
Payment system clearing for transactions
Abstract
According to the invention, a method for a payor paying a
merchant using a payment system is disclosed. In one step, account
information is received that can be used for receiving funds using
a money handler. The account information identifies an account of
the payor. A token is generated that correlates to the account
information. The token is sent to the merchant that uniquely
identifies the payor and the merchant. The token, which corresponds
to a payment, is received. It is authenticated that the token was
presented by the merchant. The payment is transferred from the
payor to the merchant with the payment system.
Inventors: |
Mascavage, III; John Joseph
(San Mateo, CA) |
Assignee: |
First Data Corporation
(Greenwood Village, CO)
The Western Union Company (Englewood, CO)
|
Family
ID: |
32711358 |
Appl.
No.: |
10/340,570 |
Filed: |
January 10, 2003 |
Prior Publication Data
|
|
|
|
Document
Identifier |
Publication Date |
|
US 20040139008 A1 |
Jul 15, 2004 |
|
Current U.S.
Class: |
705/39;
705/40 |
Current CPC
Class: |
G06Q
20/102 (20130101); G06Q 30/06 (20130101); G06Q
20/04 (20130101); G06Q 20/14 (20130101); G06Q
20/10 (20130101) |
Current International
Class: |
G06Q
40/00 (20060101) |
Field of
Search: |
;705/40,65,39 |
References Cited
[Referenced By]
U.S. Patent Documents
Foreign Patent Documents
|
|
|
|
|
|
|
0 949 596 |
|
Oct 1999 |
|
EP |
|
1 077 436 |
|
Feb 2001 |
|
EP |
|
WO 00/22559 |
|
Apr 2000 |
|
WO |
|
WO 00/46725 |
|
Aug 2000 |
|
WO |
|
WO 00/54122 |
|
Sep 2000 |
|
WO |
|
WO 00/67177 |
|
Nov 2000 |
|
WO |
|
WO 00/79452 |
|
Dec 2000 |
|
WO |
|
WO 02/05195 |
|
Jan 2002 |
|
WO |
|
Other References
Mastercard International, Secure Payment Application (SPA),
downloaded from website http://www.mastercardintl.com. cited by
other .
Confinity, Inc., PayPal.com, How PayPal.com Works, downloaded from
website http://www.paypal.com/ on Feb. 7, 2000. cited by other
.
Idealab Company, PayMe.com, downloaded from website
https://ssl.idealab.com/ on Feb. 16, 2000. cited by other .
X.Com, Do More with Your Money, downloaded from website
http://www.x.com. cited by other .
Dotbank, The Way to Send and receive Money on the Internet,
downloaded from website http://www.dotbank.com. cited by other
.
Transpoint, The Way to Pay Online, downloaded from website
http://www.transpoint.com/ on Feb. 10, 2000. cited by
other.
|
Primary Examiner: Weisberger; Richard C
Attorney, Agent or Firm: Townsend and Townsend and Crew
LLP
Claims
What is claimed is:
1. A method for a payor paying a merchant using a payment system,
the method comprising: using a payment enabler having a computer
processor and a database to receive account information that is
usable to receive funds from a money handler in order to pay for
the purchase an item from a merchant, the account information
received from the payor, wherein the account information identifies
an account of the payor, wherein the account information includes
an account number of the payor; generating a token using the
processor of the payment enabler, wherein the token comprises an
electronic data file having a user identifier that identifies the
payor but does not include the account number, and a merchant
identifier that identifies the merchant; the payment enabler
issuing the token to the merchant; the payment enabler receiving
the token back from the merchant when the payor confirms that the
item is to be purchased from the merchant; the payment enabler
authenticating that the token was presented by the merchant by
using the processor to check that the merchant identifier from the
received token is the same as that previously transmitted from the
payment enabler to the merchant; and transferring the payment from
the payor to the merchant with the payment system.
2. The method for the payor paying the merchant using the payment
system as recited in claim 1, further comprising a step of
determining if the token has violated one or more of the rules
associated with the token.
3. The method for the payor paying the merchant using the payment
system as recited in claim 1, wherein the token comprises one or
more rules that regulate use of the token.
4. The method for the payor paying the merchant using the payment
system as recited in claim 1, wherein the token comprises a code
that can be analyzed by the computer processor of the payment
enabler to determine if information in the token has been
modified.
5. The method for the payor paying the merchant using the payment
system as recited in claim 1, further comprising receiving at the
payment enabler a request from the payor to revoke the token.
6. The method for the payor paying the merchant using the payment
system as recited in claim 1, wherein the token is retained by the
merchant for use in future transactions between the payor and the
merchant.
7. The method for the payor paying the merchant using the payment
system as recited in claim 1, wherein the token can only be used by
the merchant to the exclusion of other merchants.
8. The method for the payor paying the merchant using the payment
system as recited in claim 1, further comprising the payor
selecting the item from a web site of the merchant prior to
contacting the payment enabler.
9. The method for the payor paying the merchant using the payment
system as recited in claim 8, further comprising the payor
proceeding to a check out display screen, wherein the display
screen includes login information to access the payment
enabler.
10. The method for the payor paying the merchant using the payment
system as recited in claim 9, wherein the login information
includes fields for entering a user name and password, and further
comprising receiving at the payment enabler the user name and
password and authenticating the payor based on the user name and
password.
11. The method for the payor paying the merchant using the payment
system as recited in claim 1, further comprising the payment
enabler comparing the token from the merchant with a list of
revoked tokens stored in the database.
12. The method for the payor paying the merchant using the payment
system as recited in claim 1, further comprising the payment
enabler transmitting confirmation information to the payor that
payment has been effectuated.
Description
BACKGROUND OF THE INVENTION
The invention relates generally to payment systems, and more
particularly relates to transferring money between parties.
One party may wish to transfer money to herself, a counter party,
or vice versa, for any of a variety of reasons. Frequently, a payor
party owes a debt to a payee party or is purchasing something from
a payee party. These purchases could be performed online or
in-person at a point of sale (POS) terminal. A consumer typically
carries a number of payment sources such as checks and cards to use
in these purchases. During checkout, the consumer enters
information from the check or card to allow transfer. POS terminals
allow entering some of this information in an automated fashion
using, for example, a check reader, a bar code reader, a magnetic
stripe reader, a smart card reader, or a RFID reader.
In some cases, automated terminals gather some information from
cards in an automated way. For example, airport kiosks allow
entering a credit card with a magnetic stripe to read the name of
the passenger to initiate a process for issuing a boarding pass.
The passenger may also be able to enter this information with a
keyboard.
There are electronic wallets available online to ease the checkout
process. These electronic wallets store card information and
demographic information that could be used to purchase items in an
online checkout process. The consumer manually enters this
information into the electronic which serves as a repository. The
card information includes the card number, accountholder name,
expiration date, etc. associated with the account. Some online
merchants are configured to automatically pull the information from
the electronic wallet needed to complete the transaction. The
online merchant can store the information from the electronic
wallet for future purchases.
BRIEF DESCRIPTION OF THE DRAWINGS
The present invention is described in conjunction with the appended
figures:
FIG. 1 is a block diagram of an embodiment of a money transfer
system;
FIG. 2 is a block diagram of an embodiment of a payment system;
FIG. 3 is a block diagram of an embodiment of a payment
enabler;
FIG. 4 is a block diagram of an embodiment of an online
merchant;
FIG. 5 is a block diagram of an embodiment of a retail
merchant;
FIG. 6 is a screen shot of an embodiment of an authentication
screen for a transaction;
FIG. 7 is a screen shot of an embodiment of an authorization screen
for an purchase;
FIG. 8 is a screen shot of an embodiment of an account rule screen
is shown that allow defining rules for various accounts of the
user;
FIG. 9 is a data structure of an embodiment of a token; and
FIGS. 10A and 10B are a flow diagram of an embodiment of a process
for performing a purchase.
In the appended figures, similar components and/or features may
have the same reference label. Further, various components of the
same type may be distinguished by following the reference label by
a dash and a second label that distinguishes among the similar
components. If only the first reference label is used in the
specification, the description is applicable to any one of the
similar components having the same first reference label
irrespective of the second reference label.
DESCRIPTION OF THE SPECIFIC EMBODIMENTS
The ensuing description provides preferred exemplary embodiment(s)
only, and is not intended to limit the scope, applicability or
configuration of the invention. Rather, the ensuing description of
the preferred exemplary embodiment(s) will provide those skilled in
the art with an enabling description for implementing a preferred
exemplary embodiment of the invention. It being understood that
various changes may be made in the function and arrangement of
elements without departing from the spirit and scope of the
invention as set forth in the appended claims.
In one embodiment, the present invention provides a system for a
payor paying a merchant. Included in the system are a payment
enabler, a money handler interface, a user interface, and a token.
The payment enabler receives account information for receiving
funds using a money handler. The account information identifies an
account of the payor. The user interface receives account
information. The payor and the merchant are uniquely identified by
the token, which can also be correlated to the account information.
The token is sent to the merchant and later returned to the payment
enabler to clear a payment. A check of the returned token is
performed before transferring the payment from the payor to the
merchant with the payment system.
In another embodiment, the present invention provides a method for
detecting transfer requests that could be fraudulent. In one step,
account information is received that can be used for receiving
funds using a money handler. The account information identifies an
account of the payor. A token is generated for a merchant that is
one of a plurality of merchants. The token correlates to the
account information. The token is sent to the merchant. The token
uniquely identifies the payor and the merchant. The token
corresponding to a payment is received. It is determined that the
token was presented by a party other than the merchant. Transfer of
the payment to the party is prevented.
In yet another embodiment, the present invention provides a method
for a payor paying a merchant using a payment system. In one step,
account information is received that can be used for receiving
funds using a money handler. The account information identifies an
account of the payor. A token is generated that correlates to the
account information. The token is sent to the merchant that
uniquely identifies the payor and the merchant. The token, which
corresponds to a payment, is received. It is authenticated that the
token was presented by the merchant. The payment is transferred
from the payor to the merchant with the payment system.
Initially referring to FIG. 1, a block diagram of an embodiment of
a money transfer system 100 is shown. Included in the money
transfer system 100 are retail merchants 150, online merchants 155,
a payment system 140, and users 110. In a typical transaction, a
user 110 is transferring payment with the payment system 140 to a
retail or an online merchant 150, 155 as part of an online or
in-person checkout process. Any number of users 110 can use the
payment system 140 to transfer money to the various merchants 150,
155.
In this embodiment, there are both retail and online merchants 150,
155 that the user 110 can transfer money to with the payment system
140. The retail merchants 150 typically have storefronts that the
user 110 visits to make a purchase. A point of sale (POS) terminal
is used to manage the transfer of payment to the retail merchant
150. With online merchants 155, the user 110 interacts with an
electronic interface to the online merchant 155. For example, the
user 110 pulls up a screen from the online merchant 115 that allows
selection of items for sale and entry of payment information.
The payment system 140 effectuates transfers between the users 110
and the merchants 150, 155. Included in the payment system 140 are
a payment enabler 170, money handlers 160, and user interfaces 180.
After choosing the items for purchase, users 110 and merchants 150,
155 primarily interface with the payment enabler 170 through the
user interfaces 180 with information provided by the payment
enabler 170. Once the transaction is configured for execution, the
payment enabler 170 interacts with money handlers to effectuate the
transfer. The payment enabler 170 tracks the transfers and allows
the user 110 and merchant 150, 155 to receive status information on
accounts and transfers.
The user interfaces 180 allow a multitude of ways for interaction
with the payment enabler 170. In various embodiments, the user and
merchant 110, 150, 155 can interact with a computer, a phone, a POS
terminal, etc. to communicate with the payment enabler 170. The
user 110 configures an account with the merchant 150, 155, enters
handler information for one or more money handlers 160, configures
transfers, and gathers status information using any of the possible
user interfaces 180. The merchant 150, 155 passes gathered
information to the payment enabler 170 and receives one or more
tokens that are used to clear payments through the payment system
140.
The money handlers 160 are various entities that accept credits or
debits on behalf of users 110 and merchants 150, 155. Typically,
the account with a particular money handler 160 is created
separately. For example, a merchant 150, 155 would typically have
an account with a bank handler and a user 110 would have a credit
card handler for a purchase by the user 110 using a credit card. In
addition to accepting credits and debits, the money handlers 160
may participate in authentication, provide status information on an
account, and provide clearing status for transactions.
In other embodiments, the user 110 could transfer money for any
purpose to a payee in an online transaction rather than to a
merchant 150, 155. Further, the roles of the parties could be
reverse to send money to the users 110. FIG. 1 shows
interconnection between the various blocks, but those connections
could be direct connections or virtual connections through a
network. Further, the various blocks could have their functionality
combined or separated in various embodiments.
With reference to FIG. 2, a block diagram of an embodiment of a
payment system 140 is shown. In this embodiment, seven money
handlers 160 and seven user interfaces 180 are shown. Other
embodiments could have more or less handlers 160 and interfaces
180. Each of the money handlers 160 allows a payor or payee 110,
130 to add and/or remove money from the payment enabler 170.
Normally, the payor 110 chooses the handler 160 to fund the
transaction and the payee 150, 155 chooses the handler 160 that
receives the transfer. The user interfaces 180 allow a variety of
interaction with the payment enabler 170 to fund a payment or to
transfer money to and from a stored value fund of the payment
system 140.
In many cases, the user 110 interacts with the interface 180 to
communicate with the merchant 150, 155 and payment enabler 170.
From the perspective of the user 110 the interaction with the
payment enabler 170 could be seamless with the interaction with the
merchant 150, 155. For example, the payment enabler screens could
be branded with the merchant logos and trade dress. Some
embodiments could accentuate that the separate payment enabler 170
were being interfaced with logos and trade dress of the payment
enabler 170.
A promotion handler 160-1 allows adding and removing money in a
form other than legal tender or a negotiable instrument. Examples
of promotion handlers 160-1 include airline mileage programs and
prepaid phone cards. For example, a user 10 could use money in a
stored value fund of the user to purchase airline miles with an
airline mileage handler 160-1 or miles could be transferred from a
user 110 to a merchant 150, 155 to buy something. A conversion rate
would be applied to convert between money and mileage credit. The
payment enabler 170 would store any special information for
interacting with the promotion handler 160-1, such as the user's
promotion account number, password, etc.
Credit and debit card handlers 160-2, 160-3 largely behave the same
from the perspective of the user 110 and merchant 150, 155. Both
can be used to add money into the payment enabler 170 for a
merchant payment or a stored value fund to hold. In other
embodiments, these handlers 160-2, 160-3 can also be used to remove
money from the payment enabler 170, for example, to purchase a
prepaid credit/debit card, to pay down a balance on a credit card,
or to add credit to a bank account associated with a debit card. To
use the credit and debit card handlers 160-2, 160-3, the payment
enabler 170 stores the information for receiving money from credit
or debit cards in the conventional way, such as the account number,
expiration date, name, and/or PIN. Similar information may be used
when paying-out money to a credit/debit card.
There are different ways to authenticate a debit card with the
debit card handler 160-3. The PIN could be stored with the payment
enabler 170 for use when the user 110 satisfactorily authenticates
their identity to the payment enabler 170 with another PIN, a
password, biometric information, etc. The PIN could be collected
from the user 110 during each checkout process and passed to the
debit card handler 160-3 to verify authentication. In some
embodiments, the payment enabler 170 could authenticate the user
110 and merely notify the debit card handler of that authentication
for the debit to be accepted by the debit card handler 160-3
without passing the actual PIN to the handler 160-3.
A bank handler 160-4 allows electronic funds transfer (EFT) of
money to a bank account or brokerage account of the user 110 and/or
merchant 150, 155. An account holder 110, 150, 155 of the payment
enabler 170 enters the account number and routing information into
the payment enabler 170 with a user interface 180 to facilitate
adding and removing of money from the payment enabler 170 with this
handler 160-4. In one embodiment, an automated teller machine (ATM)
could incorporate the bank handler 160-4 along with an ATM
interface 180-1 to allow adding and removing funds along with
interfacing with the payment enabler 170. Another embodiment uses a
bank handler 160-4 branch location as a retail interface 180-4 for
interacting with the payment enabler 170. Some embodiments could
wire money into a bank account of the account holder instead of an
EFT.
A retail handler 160-5 typically corresponds to a retail location
or a system of linked retail locations that may wire money, print
money orders and/or cash checks. Money may be sent to the retail
handler 160-5, whereafter the user 130 is issued cash or a
negotiable instrument for that money. Money can be added to the
system 100 by the retail handler 160-5 also. For example, the user
110 may give cash, use a card, write a check to an agent who enters
a credit into the payment enabler 170. The payor 110 could further
specify a payee 150, 155 to the agent who should get the money
along with any information on a destination account of the payee
150, 155 that might be known to the payor 10. A retail interface
180-4 at the retail location is used by the agent to indicate to
the payment enabler 170 that the money has been received from or by
the user 110, 130. Through a retail handler 160-5, a payor 110
could use the money transfer system 100 without any knowledge of
computers or without any debit/credit card or bank account.
Some embodiments could also include a billing handler (not shown).
The billing handler is a party that would bill the user 10 for any
amount due. Typically, the billing handler has a previous business
relationship with the user 110 for which billing is done on a
regular basis. For example, the billing handler could be a phone
company that would allow additions to the periodic billing
statements sent to the user 110. The additional amounts added to
the bill would correspond to purchases by the user 110. In some
cases, credits from the payment system 140 could be used to paydown
any balance on the periodic bill. Where a positive balance were
achieved from credits, the billing handler could issue a check with
their periodic billing statement.
Gift certificates are dispensed and redeemed with one or more gift
certificate handlers 160-6. The gift certificate can be limited to
merchandise and/or services from a single merchant 150, 155 or a
group of merchants 150, 155. In some cases, the gift certificate is
used online by entering a code unique to the gift certificate or
could be printed for use with a retail merchant 150. Multi-store
gift certificates such as Flooz.TM., formerly available from
Flooz.com, could also be provided to an account holder.
An entitlement handler 160-7 can support third party payment for a
percentage of purchases and/or certain types of purchases. The
entitlement handler 160-7 could support programs like food stamps
where certain types of products can be purchased by program
participants with the government paying the merchant. In some
embodiments, the entitlement handler 160-7 could pay a percentage
of the items purchased. Where a product or percentage of product is
not compensated by the entitlement handler 160-7, a secondary
handler can be specified to pay for that product or percentage of a
product.
As briefly discussed above, the ATM interface 180-1 allows
interaction with the payment enabler 170. The account holder may or
may not have an affiliation with the ATM that is used to interface
with the payment enabler 170. Where there is no affiliation, the
owner of the ATM may charge the user a fee for this service. The
account holder can receive cash or deposit cash if the ATM is
coupled to a bank handler 160-4. In any event, the ATM interface
180-1 can be used to interface with the payment enabler 170 in the
same way an account holder may interact through a web browser and
computer with the payment enabler 170. If the ATM interface has a
magnetic stripe or smart card reader, this could be used by to
avoid entering credit or debit card information manually for the
payment enabler 170. Further a biometric scanner could be used to
allow authentication of the account holder or to gather a
evidentiary record of who authorized the transaction.
A kiosk interface 180-2 allows an account holder to also interact
with the payment enabler 170, but does not allow adding or removing
cash in this embodiment. The kiosk interface 180-2 may be a browser
terminal available for general use. Some embodiments may include a
check or money order printer for removing money from the system
100. Further, some kiosk interfaces 180-2 could include a card
reader or a biometric reader. The kiosk interface 180-2 could be in
a retail location and linked to the other systems in the retail
location such that a payout could be provided by other systems in
the retail location. For example, the agent could access the
payment enabler 170 with a retail interface 180-3 to remove funds
that are disbursed to the payee 150, 155 from a cash register.
An Internet interface 180-3 is typically implemented through a web
browser or some other application software. The browser downloads
web pages from the payment enabler 170. The Internet interface
could be hosted by the computer of an account holder or any
computer that can display web pages. Some embodiments could host
the Internet interface on a portable device such as a wireless
phone or personal digital assistant (PDA). The Internet interface
180-3 may also be used by the ATM, kiosk, retail, POS interfaces
180-1, 180-2, 180-4, 180-7 in whole or in part. The Internet
interface 180-3 uses encryption for the link to the payment enabler
170 in some embodiments. Other embodiments may not have a web
interface, using application software instead to interact with the
payment enabler 170.
The retail interface 180-4 allows for specialized interaction by an
agent at the retail location 125. Agents typically have special
training and offer enhanced services over most interfaces 180 and
handlers 160. The agent can move money between payors 110 and
payees 150, 155. Also, the agent can pay-in and pay-out money from
the online transfer system 100 or configure transfers between
account holders. Files from removable media can be read into the
system by the agent using the file interface 180-6. The retail
interface 180-4 allows an agent to act on behalf of an account
holder when manipulating his or her account. For security, the
password or PIN of the account may be entered by the account holder
during this manipulation on a private keypad or terminal. Further,
the agent may verify the identity of the payee 150, 155 before
disbursing the funds. In one embodiment, a test question is
provided by the payor 110 that the payee 150, 155 must answer
before the electronic gift is paid-out. Alternatively, the payee
150, 155 could confirm some not easily discernable information such
as the maiden name of someone, a place of birth, a social security
number, etc. A biometric reader could be also used on the payee
150, 155.
Interaction with the payment enabler 170 may also be performed over
a telephone interfaced to the plain-old telephone system (POTS).
The phone interface 180-5 provides voice prompts and recognizes the
user's touch-tone or speech recognized input. Enhanced interaction
with the phone interface 180-5 could be provided with wireless
phones, smart phones or VOIP phones having wireless access protocol
(WAP) and/or graphical user interfaces (GUIs).
The payment enabler 170 can receive and send files that list
information related one or more transfers. These files are
transferred from the various account holders in a secure manner
that authenticates the sender and prevents unauthorized
modification. The files could be transferred using standard file
transfer protocol (FTP) protected by secure sockets layer (SSL) or
other ways. Other embodiments could encrypt the files using an
encryption algorithm such as DSA with 512-bit keying. The received
files could initiate transfers or request status of existing
transfers. The sent files could provide status information on
transfers. In this embodiment, the merchant 150, 155 presents a
token associated with the user to the payment enabler 170 when
clearing transactions.
POS interface 180-7 is used with retail merchants 150 as part of
the checkout process. This interface 180-7 connects to the payment
enabler 170 who formulates screens that the user 110 can interact
with. In a typical situation, the user 110 would wait in a checkout
line before a clerk determines what is owed for the selected items.
A POS terminal could read a smart card, magnetic stripe, check, bar
code, RFID tag or other machine readable medium to accept credit
and debit cards and checks. This POS terminal could have a screen
that provides instructions and confirms entries. In some cases, an
existing machine readable medium registered with the payment
enabler 170 or that includes information on the user could be read
to ease access to the payment enabler 170 as a keyboard is
typically not available, but could be available in some
embodiments. Further, the POS terminal could include one or more
biometric readers to determine or verify the identity of the user
110 or to store biometric information if there is a question as to
the true identity of the user 110.
Referring to FIG. 3, a block diagram of an embodiment of a payment
enabler 170 is shown. The transfer of money between handlers 160,
stored value funds and account holders 110, 150, 155 is controlled
by the payment enabler 170 in this embodiment. The payment enabler
170 may be implemented on one or more computers in one or more
locations where the various computers would communicate over a
network of some sort. Included in the payment enabler 170 are a
payment controller 304, handler interfaces 308, a billing function
312, a messaging function 316, an enabler interface 320, a user
database 324, a payment conversion function 328, and an exchange
rate database 332.
The payment controller 304 manages operation of the payment enabler
170. The handlers 160 and interfaces 180 along with account holder
information and money conversion tasks are all choreographed by the
payment controller 304. Authorization of a transfer and
authentication of an account holder are performed and recorded
under the guidance of the payment controller 304. The payment
controller 304 is interconnected to the other portions of the
payment enabler 170 by one or more networks.
The payment conversion function 328 allows converting between
disparate forms of money as it is transferred through the money
transfer system 100. An exchange rate database 332 holds conversion
factors that allow determining the proper weight to give one form
of money with respect to the others. In one example, the payment
conversion function 328 may convert money in U.S. dollars to money
in European Union Euros. In another example, a user may convert
money into airline miles of eight miles for every dollar for a
promotion handler 160-1. The exchange rate database 332 is updated
with conversion rates as often as practical to track changes in
currency values. The conversion rate may accommodate a percentage
service fee for the exchange, or a flat fee could be charged
instead of a conversion rate. In some embodiments, the conversion
rate incorporates a service fee.
The billing function 312 monitors and charges for the services of
the payment enabler 170. There may be charges when transferring
money, converting money, redirecting a transfer, opening accounts,
using customer service, sending electronic gifts, printing and
mailing negotiable instruments, using kiosks, ATMs or retail
locations, etc. These charges are deducted from a transfer in this
embodiment, but other embodiments could charge monthly fees or
charge a fee to the payor 110 and/or payee 150, 155 in addition to
the amount transferred. Some embodiments could recover a fee from
the handler 160, for example, a fee could be charged to the gift
certificate target store instead of charging the payor 110. The
different types of handlers 160 may have different fees associated
with them. For example, a credit card may have a three percent
charge, but a bank transfer may only have a one percent charge. The
payor 110 and/or the payee 130 can be charged to transfer money
between themselves. The transfer in or out of the system 100 may
incur a separate charge. The billing function 312 may issue, or
otherwise make available, invoices for some account holders 110,
150, 155.
The billing function 312 also tracks the costs, discount and
promotions available from the money handlers 160. The user 110
and/or merchants 150, 155 can prioritize the order at which various
handler accounts are presented. Conflicting preferences may be
resolved in favor of either the user 110 or merchant 150, 155 in
various embodiments. In some cases, the presentment of some options
are completely eliminated. For example, a particular merchant 150,
155 may accept payment from the payment enabler 170 so long as a
credit card handler 160-2 is not used such that the option of using
a credit card is not presented to the user 110 during checkout.
There are handler interfaces 308 to support the various types of
handlers 160. Each of these interfaces 308 may support a single
handler 160 or a group of handlers. For example, a single interface
308 may perform EFT both to and from all bank handlers 160. When
money is sent to or received from a handler 160, the appropriate
handler interface 308 passes the money and transfer information to
the payment controller 304. In some embodiments, the cost of the
transfer to or from the handler 160 is reported by the handler
interface 308 such that the billing function can recover those
costs.
Information for the account holders of the system 100 is stored in
the user database 324. This information includes an address book of
other account holders, money credit in any stored value fund of the
account holder, past money transfer information, account number,
e-mail addresses, demographic information, handler interface
information, handler preference information, merchant relationship
information, etc. In this embodiment, the demographic information
includes name, address, phone number(s), a government issued
identification number such as a social security number, and other
information. Any money credit not transferred out of the system 100
is stored in a stored value account or a trust account for the
benefit of the user 110 according to the entry in the user database
324 corresponding to that user and interest may or may not be paid
on that money credit.
The user 110 has account information for one or more of the various
merchants 150, 155 that use the payment enabler 170 stored in the
user database 324. In this embodiment, the payment enabler 170
issues a token for each merchant 150, 155 that the user 110 has a
relationship with. Each merchant could even have a number of tokens
for a user 110 that correspond to the various handler accounts
available to the user 110 when paying. The user database
information can be accessed with the token to effectuate the
payment through the handler 160.
The user 110 may or may not have configured an account with the
payment enabler 170. Some embodiments create an account for the
user 110 specific to that merchant without requiring the user 110
to log into the payment enabler 170. Where a user 110 has a number
of merchant-specific accounts, the payment enabler could associate
those with a single account if the user 110 can be positively
identified. Where the user 110 has created an account with the
payment enabler 170, the user 110 can login to manipulate their
account. For example, the user 110 can view the active tokens for
the various merchants 150, 155 and cancel any of those tokens.
The enabler interface 320 is used by the various interfaces 180 to
interact with an account holder or their agent. The enabler
interface 320 allows the user 110, 130 to create and maintain their
account, transfer money, configure handlers, and learn to use the
system 100. The appropriate user interface 180 formats and
processes the enabler interface information according to the device
used to interface with the payment enabler 170. In other words, the
various handler interfaces 180 interact with the enabler interface
320 to translate information suitable for the particular handler
interface 180. For example, the enabler interfaces may want certain
demographic information to create an account that the phone
interface 180-5 would convert to verbal questions. In another
example, the Internet interface 180-3 takes the information from
the enabler interface 320 and formats into hypertext mark-up
language (HTML) appropriate for the web browser of the account
holder 110, 150, 155.
A messaging function 316 is used with some configurations to
optionally notify the account holders 110, 150, 155 of certain
events. Status, acknowledgment and billing messages are sent by the
messaging function 316. For example, a transfer not clearing could
be sent to the payor 110 such that another payment option could be
used to fund the transfer. These messages could be accessed using a
web browser, an e-mail program, an instant messaging program, a
voice mail system, a pager, a WAP enabled device, etc. In some
embodiments, the messaging function 316 may issue printed bills and
statements for users 110, 130. The messaging function 316 is also
used to communicate with retail locations in various
embodiments.
With reference to FIG. 4, a block diagram of an embodiment of the
online merchant system 155 is shown. An online merchant server 404,
which could include one or more computers, manages operation of the
merchant system 155. A merchant web site 420 runs on the online
merchant server 404. Users interact with the merchant web site 420
by way of a wide area network (WAN) 424 to select goods and/or
services for purchase. Those skilled in the art appreciate that the
merchant server 404 could be one or more computers located in one
or more locations where those computers are interconnected by some
sort of network. Also, some blocks of the diagram could be combined
into one as those skilled in the art appreciate. Further, other
components of these and other blocks diagrams described in this
specification could be so divided or combined.
The merchant web site 420 interfaces with a merchant authorization
component 412 and a merchant clearing component 416 to integrate
the functionality of the merchant system with the payment system
140. The merchant authorization component 412 communicates with the
payment enabler 140 using the proper format, tokens, protocol,
encryption and digital signatures during the authentication process
where a payor 110 authorizes payment with the payment enabler 170.
Communication during the clearing process is facilitated by the
merchant clearing component 416 in a similar way. More
specifically, the merchant clearing component 416 transports
clearing files to the payment enabler 170 and receives settlement
files from the payment enabler. Instead of passing files, the
merchant can log into the payment enabler 170 or the merchant
clearing component 416 can make automated queries on individual
transactions.
Depending upon a business model of the online merchant 155, various
information is stored in a merchant database 408. In this
embodiment, digital IOUs, shipping addresses, user names, user
passwords, past invoices, tokens, shipping status, and payment
status is stored in the database 408. This embodiment does not
store account information related to accessing money handlers 160
in the merchant database 408. Any account information gathered by
the merchant 155 is exchanged by the payment enabler 170 for a
token that is stored in the merchant database 408. The payment
status information may indicate where in the settlement process is
a particular payment. For example, the payment status may indicate
that a digital IOU was issued two days ago, a clearing file was
submitted yesterday that presented a certain portion of the digital
IOU and a settlement file today indicated the EFT had cleared that
portion. In some circumstances, the merchant may wait for the EFT
funds to clear before sending the goods and/or providing service to
the user 110.
Referring next to FIG. 5, a block diagram of an embodiment of an
retail merchant 150 is shown. The retail merchant 150 includes a
retail merchant server 504, the merchant clearing component 416,
the merchant database, a POS terminal 508, a card/check reader 512,
and a biometric reader 516. Retail merchants 150 typically include
the POS terminals 508 to aid in checkout, but there is no reason
why an online merchant 155 couldn't work with a POS terminal that
is coupled to the online merchant 155.
A store clerk typically operates a cash register that is coupled to
the POS terminal 508. The user 110 typically interacts with the POS
terminal to effectuate payment. Communication between the POS
terminal 508 and the payment enabler 170 is relayed by the retail
merchant server 504 through the WAN 424. The screens on the POS
terminal 508 are formulated by the payment enabler 170 and/or the
POS terminal 508 itself.
Information gathered by the card/check reader 512 and the biometric
reader 516 is processed by the POS terminal 508 and relayed back to
the payment enabler 170 for further analysis. The card/check reader
512 can read account and routing information from checks and
account information from cards. The card could have a one- or
two-dimensional bar code, a magnetic stripe, a smart card chip,
and/or a RF ID tag. In some cases, the card provides an account
number that is used to retrieve other information from the payment
enabler 170. For example, the card could include a user name or
code representation of one to the card/check reader 512 that is
passed to the payment enabler 170. Some embodiments could allow any
card or check registered with the payment enabler 170 that is read
to identify the user 110.
Once the user 110 is known to the money transfer system 100, that
purported identity can be further verified. This embodiment uses a
biometric reader to assist in this process. The biometric reader
could read any portion of the user to confirm the purported
identity by checking the biometric data against information stored
in the user database 324. Some embodiments could use a soft keypad
on the screen of the POS terminal 508 to allow entry of a PIN to
confirm the purported identity of the user 110. Further, the POS
terminal screen could allow entry of a signature on its screen that
is processed to confirm identity.
In some cases, the possession of the card or check is the only
authentication performed, but the biometric reader or the
electronic screen signature could be stored in the user database
324. The biometric scan or signature could be used where the charge
is later disputed. Where only one form of payment, such as a check
or card, is presented and/or the user 110 is not registered with
the payment enabler 170, a transfer could be limited to that form
of payment for that transaction. Other embodiments could allow
access to other accounts stored in the payment enabler 170 once the
existence of one form of payment is demonstrated.
After the merchant 150 has authenticated the user 110, the token is
relayed to the payment enabler 170 to clear the payment. Where
there is no token stored in the merchant database, the merchant can
request one from the payment enabler 170. Information is passed to
the payment enabler 170 to create or access a payment enabler
account. The user 110 can limit the use of the token to time
periods, purchase amounts, purchase of certain products and/or
classes or products, for example. The time periods could be time of
day, a range of dates, an expiration, etc. Limits on the purchases
could include limit on the amount per transaction, the amount over
a time period or a cumulative amount to not exceed. For example,
the token could be valid for the next 90 days with no more than
$100 per week available for sporting goods purchases only.
With reference to FIG. 6, a screen shot of an embodiment of an
authorization screen 600 is shown. In this embodiment, the user 110
accesses the online merchant 155 across a network. A similar screen
600 could be presented at a retail merchant 150 for in-store
purchases. The checkout screen 600 could be activated at some point
in the checkout process with the online merchant 155. The checkout
screen 600 is typically, but not necessarily, in a window that
overlays the window associated with the merchant such that when
closed, the merchant's window is revealed.
The authentication is performed by the merchant 155 in this
embodiment before the stored token can be used to clear payment.
Some embodiments could use the payment enabler to authenticate the
identity of the user 110 before indicating to the merchant 155 that
the user is authenticated.
The checkout screen presents a login portion 612 and a new account
portion 608. Existing account holders enter their user name 640 and
password 644 to authenticate their identity and login. A user 110
without an account uses the new account portion 608 to begin a
registration process where handler, authentication and demographic
information are entered.
Some embodiments of the authentication screen 600 could have a way
to link their account with the merchant to an existing account with
the payment enabler 170. A button could be provided to link to a
login screen that allows entry of username and password. Tokens
issued to the merchant 150, 155 of a linked account could include
an unique identifier assigned by the payment enabler 170.
With reference to FIG. 7, is a screen shot of an embodiment of an
authorization screen 700 for an online purchase is shown. Once the
user 110 has authenticated their identity in any of the various
ways described above, the authorization screen 700 can be presented
with an authenticated user name 640. The merchant name 701 is shown
along with the amount 703 of the transaction. Some embodiments
could itemize the items being purchased along with tax, shipping,
etc. on the authorization screen 700. These line items are passed
by the merchant 150, 155 to the payment enabler 170 for possible
inclusion in the authorization screen 700. In some embodiments, the
merchant 155 could formulate the authorization screen 700 and
inform the payment enabler 170 of the outcome of the authorization
request.
The user 110 may only have one account registered with the payment
enabler 170 or be otherwise limited to one account during checkout.
Where more than one account is possible, an account pull-down field
702 allows selection of those different accounts. The user 110 can
optionally add or modify accounts. For a selected account, account
information 706 and an available funds field 704 is populated. For
different money handlers 160, this field 704 has a slightly
different meaning. For a credit card, the available funds field is
the available credit 704 before reaching any credit limit. The cash
balance of a bank account is the available funds field 704 were the
bank handler 160-5 or a debit card handler 160-3 is selected. For a
gift certificate handler 160-6 or promotion handler 160-1, the
available funds 704 is the remainder of the credit or
point-equivalent credit remaining in that account. If the stored
value fund with the payment enabler 170 is selected, that balance
is used as the available funds field 704.
Referring next to FIG. 8, a screen shot of an embodiment of an
account rule screen 800 is shown that allows defining rules for
various accounts of the user 110. The account rule screen 800 is
formulated by the payment enabler 170 in this embodiment, but could
be branded consistently with the merchant 150, 155. The rules could
be defined for all merchants or for a particular merchant only. The
depicted embodiment shows a screen for defining rules for a
particular merchant, namely, World O' Widgets. There could be a
single token for the merchant or tokens for each of the available
accounts.
This embodiment shows eight account entries 812. Each entry has an
account name 874, a money handler type 878 and an optional rule
882. Where there is no rule, the token given to the merchant 150,
155 would never expire without intervention. The user can select
any account entry 812 and deactivate the token by activating the
delete button 808. The merchant 150, 155 could be notified by the
payment enabler 170 that the account were no longer available. If
that token were later presented, the payment enabler would reject
it and notify the merchant 150, 155 accordingly.
Once the rules are defined, the user can approve the modifications
with the OK button 860 or discard the changes with the cancel
button 856. Changes are stored in the user database 324. Any
changes could result in new tokens being issued for the affected
merchants 150, 150 and/or accounts. The replaced tokens would no
longer be accepted by the payment enabler 170.
With reference to FIG. 9, a data structure of an embodiment of a
token 900 is shown. This embodiment includes a header 904, a body
908 and a signature 912. Each token is unique to a user 110 and an
merchant 150, 155. During presentment of a token, the merchant 150,
155 authenticates their identity. Tokens issued to one merchant
cannot be used by another merchant. The merchant 150, 155 is
trusted to present the token only when the user has authorized
payment.
In this embodiment, the header identifies the file as a token and
could include revision information for the token so that the
payment enabler 170 could properly decode the token. The payment
enabler 170 creates the signature when producing the token. Some
embodiments could use certificates instead of signatures. Various
versions of tokens could be differentiated with the token
information. The signature is used to verify the integrity of the
header 904 and body 908. Tampering with the clear-text header 904
or body 908 could be detect by checking the signature. In this
embodiment, a DSA algorithm with 512 bit keying is used for the
signature, but other embodiments could use other algorithms and
keying. Private or public keying could be used for the
signature.
The body includes a merchant identifier (MID) 916, a customer
identifier (CID) 920, a payment identifier (PID) 924, an optional
user identifier (UID) 928, and limit rules 932. The MID 916
uniquely identifies all the merchants 150, 155 that use the payment
enabler 170. To authenticate a connection, the merchant 150, 155
originating the connection is checked against the MID 916. The CID
is the account number assigned to the user 110 by the merchant 150,
155. Each customer of the merchant 150, 155 should have a unique
CID 920 assigned to each customer. With respect to the payment
enabler 170, there could be duplicate CIDs 920 from various
merchants, but no single merchant should have two or more users
having the same CID 920. In this embodiment, the merchant 150, 155
can assign the CID 920 without consulting the payment enabler
170.
Various handler accounts are identified by the PID 924 for those
embodiments that identify the account with the token 900. Some
embodiments could hold a code in the PID field 924, such as all
zeros, to signify that all accounts are available with that token.
The merchant 150, 155 would separately specify to the payment
enabler 170 the account to use for a particular purchase. If a
merchant has a single token for all accounts, revoking the token
prevents the merchant from any charges to any account of the user
110. Rules could limit the accounts available where a number are
specified. For example, all accounts except the gift certificate
account could be specified. Where there are a number of tokens that
denote different accounts with the PID 924, the user 10 can revoke
individual tokens to selectively prevent the merchant from using
some accounts.
This embodiment includes a UID field 928 that holds a code uniquely
identifying the user 110 to the payment enabler 170. No two users
110 of the payment enabler 170 have the same UID 928. The UID field
928 can be blank or omitted where the MID 916 and CID 920 are used
to identify the user 110. In this embodiment, the UID field 928 is
used where a user 110 has configured a login account with the
payment enabler 170 or where accounts with two merchants 150, 155
are correlated to the same user 10. The UID 928 could be the user
name 640 that is entered during the login process.
Restrictions can be placed upon use of the token in the limit rules
field 932. Temporal, monetary and/or goods limits can be specified
in this field. The token could be issued to another by the user 110
to a third party. The user 10 could specify how the third party
could use the payment enabler 170 to charge handler account of the
user 110 using that token. For example, a parent could issue a
token to their child in college for use at the university stores
for books only. The token could be limited to a single transaction
such that after all items are shipped and redeemed, the token is no
longer usable.
In some cases, the user 110 may want to limit the risk that the
merchant will improperly charge their handler account. Absolute
money limits, charges over a time period, or an expiration date
could be specified to limit the merchant. For example, only $100
per month could be charged by a long distance phone company using a
particular token,
Where the token is usable at a number of merchants and/or
departments of merchants, the rules field 932 could limit usage of
the token within that group of merchants and/or departments. For
example, all ACME department stores could use the token except
store 112 or the sporting goods department in all stores.
Limitations on the types of goods could be added to the rules field
932. A particular SKU, brand, product type, or price thresholds
could be regulated in this field. These limitations could be
applied across all merchants or just against a specific merchant.
For example, products over $500 could be excluded from ABC Jewelers
or alcohol from any merchant.
Although the header 904 and body 908 of this embodiment is in the
clear, some embodiments could encrypt this information to protect
it from specific parties such as the payment enabler 170, the user
110 and/or the merchant 150, 155. Parties capable of decoding the
information would have the appropriate public/private keys.
Some embodiments could include the handler account information in
the token that is protected with encryption. Other information from
the user database 324 could be moved into the tokens also.
Information in the token may not be replicated in the user database
324.
Although the above embodiment has a separate token for each
merchant 150, 155, some embodiments could have some or all
merchants use a particular token. In that embodiment, a universal
MID could be used that is valid for some or all merchants 150, 155.
Revocation of the token 900 would be effective for all merchants
associated with the MID.
In some embodiments, the MID could be excluded altogether such that
a token were good for all merchants. Where there is no MID, a UID
could be issued to each user that is unique to all users of the
payment enabler 170. This token could be used at any merchant.
Where the token were for a particular money transfer, the token
could include a transfer receiver identifier and, optionally, a
transfer receiver identifier along with information to identify the
payment account to draw from. The token could be presented by the
transfer receiver for redemption from the payment account.
Referring next to FIGS. 10A and 10B, a flow diagram of an
embodiment of a process 1000 for performing a purchase is shown.
The depicted portion of the process 1000, begins in step 1004 where
the user interacts with the merchant 150, 155 store online or
in-person. Items are selected for purchase in step 1008. The
electronic or manual checkout process is begun in step 1012.
In this embodiment, the user 110 need not open an account, but can
open or access an account if so desired. In step 1020, it is
determined what the user 110 wants to do. A new account can be
opened in step 1024 before progressing to step 1032. Where no
account is desired, processing continues to step 1036.
If the user 110 logs into an existing account, processing continues
to step 1028 where the user 110 authenticates his or her identity.
A username and password could be used and/or biometric
authentication to verify identity with an authentication screen 600
in step 1032. The authorization screen 700 is pre-populated in step
1036. Either the merchant 150, 155 or the payment enabler 170 could
formulate the authorization screen 700. Information is shared
between the merchant 150, 155 and payment enabler 170. Account
information is held by the payment enabler 170 and not the merchant
150, 155 in this embodiment. Any account information observed by
the merchant 150, 155 is securely passed to the payment enabler
170.
In step 1040, the user 110 can decide to enter or modify account
information. The user 110 interacts with the authorization screen
700 to add or modify account information in step 1044. For each new
account, a token 900 is obtained for that account in this
embodiment. Other embodiments, could have a single token that can
charge any number of handlers 160. The payment enabler 170 gives
the merchant permission to store the token 900 the merchant
database 408 for use in the clearing process. Account information
is not retained by the merchant 150, 155. Rather, the token 900 is
retained.
The existence of a token 900 could be done without the user ever
knowing of the token 900. In this scenario, the user would only
know that the merchant 150, 155 would not have access to their
account information and that only charges within the limitations
previously defined could be performed. Where the token is stored on
a storage media, the user simply uses the storage media much like
other payment options such as a check or credit card.
Although this embodiment obtains the token for storage by the
merchant as part of a checkout process, the invention is not so
limited. The token could be created before the transaction. The
user could log into the payment enabler 170 to define tokens and
issue them to various merchants 150, 155. Issued tokens are passed
to the relevant merchants. The user could be asked to associate any
existing login account with the merchant to the token such that it
is accessible upon login with the merchant. The tokens can also be
modified and revoked from the payment enabler 170.
Further, the token could be stored on the user computer or a
storage media such as a smart card, magnetic stripe, bar code,
non-volatile memory, etc. The user could have a smart card issued
that includes a token that can be read by POS terminals, for
example. The smart card could be mailed to the user or made
available for pick-up. The token in the storage media could be
presented anywhere the storage media could be read.
Once the user 110 is satisfied with the account selected,
processing continues to step 1048 of FIG. 10B where account balance
and limit information is retrieved by the payment enabler 170 from
the appropriate handler 160. In step 1052, the remainder of the
authorization screen 700 is completed based upon the account
selected. An increase in credit or alternative funding source can
be requested in step 1056 where the current purchase would exceed
any limit. Also, the user 110 could select another account with a
different limit.
In step 1060, the user 110 decides to authorize the payment or not.
Where the user 110 does not authorize payment, processing loops
back to step 1036 where another account could be selected for
funding the purchase. If the payment is authorized, processing
passes to step 1064 where the token is sent to the payment enabler
170 to confirm its ongoing validity. The payment enabler 170 checks
that the MID 916 of the token 900 corresponds to the merchant 150,
155 who sent the token to confirm the sender is not an imposter. A
revocation list of tokens is maintained by the payment enabler 170.
As users 110 revoke tokens and handlers 160 cancel accounts, the
tokens are added to a revocation list. Each token is checked
against the revocation list before honoring any transfer or
pre-authorization.
Also, the merchant 150, 155 could confirm in step 1064 that the
payment would not violate any rules 932 associated by the token
900. The merchant 150, 155 and/or the payment enabler 170 could
check the rules 932. Further, the merchant 150, 155 could confirm
that the rules 932 are unlikely to be violated when the payment is
cleared. For example, the merchant 150, 155 could expect to ship
the merchandise in a week such that a check would be make to
confirm that the token will not expire in the next week. Some
embodiments could protect the merchant 150, 155 from rule changes
with purchases that were confirmed beforehand.
In step 1068, a confirmation screen is shown to the user 110. This
screen could include invoice information that identifies the
account that will fund the purchase along with other conventional
information. In step 1072, all or part of the order is fulfilled.
The token along with an amount to redeem are submitted to the file
interface 180-6 in step 1076. The payment enabler 170 checks the
rules 932 for unauthorized charges and clears the payment to the
merchant 150, 155. The payment could be transferred out of the
payment enabler 170 using a money handler 160 or could be held in a
stored value fund of the merchant 150, 155.
The submission of tokens could be done by a merchant 150, 155 in
batch at a time after the checkout process has completed. A file
could include a number of transactions for redemption according to
some time schedule or after some order quantity or monetary
threshold. Each transaction would include a token and transfer
amount. The payment enabler 170 would clear these charges
individually. Another file could be provided to the merchant 150,
155 with clearing status for the various active transactions with
that merchant 150, 155.
While the principles of the invention have been described above in
connection with specific apparatuses and methods, it is to be
clearly understood that this description is made only by way of
example and not as limitation on the scope of the invention.
* * * * *
References